A0608
Title: The impact of news, experts and public sentiment on art prices: An empirical analysis
Authors: Taisia Pimenova - Saint Petersburg State University (Russia) [presenting]
Valeria Kolycheva - Saint Petersburg State University (Russia)
Alexander Semenov - University of Florida (United States)
Dmitry Grigoriev - Saint Petersburg State University (Russia)
Abstract: Online reviews play a crucial role in determining the prices of goods by complementing their intrinsic characteristics. In the art market, this form of expression takes the interaction between artists and art lovers to a new level. However, due to the varying expertise and influence power of participants, it is necessary to adopt detailed approaches within each group. A hedonic regression model is employed with artists' fixed effects to investigate the impact of experts and public sentiment on the price of paintings. Considering that many people buy paintings for investment purposes in the secondary art market, the interaction is further analyzed between review sentiment and buyers' investment intentions. The research is conducted using a dataset of 18,100 sold paintings. Findings indicate that negative opinions from all sources and positive public opinions significantly influence the price in accordance with their valence. Moreover, moderation analysis confirms an amplified sensitivity to negative opinions from experts and news publications. Overall, the study contributes to the empirical research on the factors influencing artwork prices and explores the significance of online reviews from different sources.
